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How To Apply For A Tax Residency Certificate in UAE

  • October/27/2022

Investment is coming in from around the globe thanks to the diversified United Arab Emirates (UAE) economy. In addition, the United Arab Emirates (UAE) offers a business-friendly tax environment, which is only one of the numerous factors that draw companies to it.

The United Arab Emirates (UAE) has entered into double taxation agreements with a significant number of nations all over the globe to guarantee that a single taxpayer is not subjected to taxation in more than one nation. In addition, the United Arab Emirates does not impose an income tax on most enterprises with their headquarters.

What Is A Tax Residency Certificate?

The term “Tax residency certificate,” or “TRC,” refers to the certificate that is approved by the UAE Federal Tax Authority (FTA) for a business running in the UAE to establish withholding tax residency and allow the company to benefit from double taxation avoidance agreements. Individuals who have their primary home in the UAE, organisations, and legal entities are all eligible to apply for the certificate, also known as a tax domicile certificate in the UAE.

The Tax Residency Certificate may be awarded to any business operating in the United Arab Emirates (UAE) for at least a year, regardless of whether it is located on the mainland or in a free zone. However, offshore corporations are not permitted to use this and are required to get a tax exemption certificate rather than a Tax Residency Certificate.

In addition, persons who have maintained a UAE residence for at least one hundred and eighty days are qualified to apply for The withholding tax Residency Certificate. To take advantage of this, persons must have a valid UAE resident visa for more than 180 days and come from countries that do not have a double taxation agreement with the UAE. It is particularly advantageous for those whose home countries do not have such an arrangement.

Eligibility Criteria For Tax Residency Certificate

To qualify for the TRC as a person, you must have been a resident in the United Arab Emirates for a period that is more than or equal to six months. Nomad Law may assist you in achieving your goal of becoming a resident in the United Arab Emirates most simply and practically possible. In addition, companies that have been formed for more than a year and have their operations efficiently managed from inside the United Arab Emirates may also be eligible for the Tax Residency Certificate and Audit services in UAE.

How Can You Apply To Get A Tax Residency Certificate?

The applicant must register with the FTA and establish an account before they may be issued a certificate. An application might be made if the account has been established. The application has to be filled out entirely before it can be submitted for evaluation and approval. The supporting papers also need to be supplied. The procedure may be carried out simply by the applicants; nevertheless, this may be time-consuming, mainly if the FTA requires further documentation and explanations.

The Advantages of Obtaining A Tax Residency Certificate

The United Arab Emirates provides a fantastic setting to launch a new commercial enterprise, and this opportunity should not be missed. The United Arab Emirates (UAE) has a very competitive tax climate, just one of the many things that draw firms to the country. Now that we’ve established why obtaining a tax residency certificate in the UAE is mandatory, let’s take a look at why it’s so vital to get one in the first place:

  • Taxes on individual income and taxes on corporation income are not included.
  • It has a key role in promoting growth in international commerce.
  • It demonstrates that a person or entity has been granted the appropriate legal recognition in the United Arab Emirates.
  • It would be best if you made every effort to avoid paying additional taxes when going through the import-export procedure.
  • It contributes to the strengthening of commercial connections between the two countries.
  • Avoiding paying taxes twice and taking advantage of tax discounts are benefits of residency in the UAE.
  • Individuals and companies are permitted to have several certificates at the same time.

The Timeframe for the UAE Tax Residency Certificate

The application procedure for tax residence certificates can only be completed online. Due to this change, the application procedure will be significantly more straightforward and practical.

After you have registered on the UAE Federal Tax Authority website, uploaded the necessary documents, and submitted an application for the certificate, the pre-approval procedure will take at least four to five working days to complete. During this period, the government will check to see whether you have submitted all of the necessary papers and will also check to make sure the documents are legitimate.

The Certificate of Tax Residency by Forthright Consultancy has a validity period of one year. The validity period gets underway at the beginning of the fiscal year that a person or corporation has decided to use. You are required to re-register for the exam if, after a year, you are still living in the UAE. Get additional information on renewing and resubmitting your application, and ensure you do it correctly along with Audit services in UAE.

Remember that to qualify for the certificate; an applicant must have lived in the UAE for a minimum of three months before applying. In addition, before applying for the withholding tax and certificate, businesses or other legal organisations must have been operational in the United Arab Emirates (UAE) for at least one year.

Final Words

Obtaining a Tax residency certificate in the UAE might provide several benefits. First, it is in your best interest to get the certificate as soon as possible after coming to the UAE if you want to avoid paying income tax in both the nation where you have established your tax residence and the UAE. Consider working with an experienced consultant like Forthright Consultancy to get everything perfect and reduce waiting time.
Our team’s qualified members will simplify your task by acquiring the relevant papers and certificates to complete the Tax Residency Certificate application procedure and Audit services in UAE promptly. Contact us now if you would like to schedule a no-cost consultation with one of our specialists, regardless of whether you are a person or a corporation.


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